Update: EU Policy Developments Impact SEMI Members

Update: EU Policy Developments
Impact SEMI Members

By Heinz Kundert, president, SEMI
Europe

Being able to quickly
identify and seize the potential offered by new technologies and new markets is
critical in the semiconductor industry. Keeping
track of public policy developments is equally important.

Decisions made in
a national Ministry or an EU institution can have a direct impact on our
industry. A new EU patent procedure, to be introduced by mid-2014, will significantly
reduce the cost and time for your company to obtain a patent valid across 25
European states. The outcomes of the current review of substances under European
EHS rules, for example, may have an impact on industry’s research priorities or
its access to the EU market. This article covers these topics: 7th
SEMI Brussels Forum; EU Patent Protection; GaAs and InP under Review (REACH); RoHS Exemptions Expiring; Banned Substances under
RoHS; EU Conflict Minerals Debate.

7th SEMI Brussels Forum on 24 May 2013

The
SEMI Brussels Forum is Europe’s leading policy event for semiconductor
equipment and materials, providing a unique platform for top-level executives and
EU representatives to exchange views and debate how to reinforce Europe’s
competitiveness in the global market. The 7th SEMI Brussels Forum will
discuss how Europe’s industry and policy-makers can increase their impact —
both individually and jointly to reinforce
Europe’s position. How can industry build on its leading positions and
expertise and optimize synergies? How can Europe balance its values and rules
on free competition on one hand, with the need to provide for a global level
playing field on the other?

This is the only
event that brings together top-level management and EU representatives to
exchange views on how to reinforce Europe’s competitiveness. For more
information, please visit: www.semi.org/eu/brusselsforum.

The
new ‘EU Unitary Patent’, to be made available by April 2014, is expected to
reduce the administrative and financial burden of patent protection across the
EU. Companies will be able to fill out a single application to the European
Patent Office — once granted, the patent is automatically valid across 25
countries (all EU member states except for Italy and Spain). A single court
will be created (Unified Patent Court) with jurisdiction over infringement
proceedings in any of these countries.

Companies
will no longer need to apply before each national body for their patent to have
effect in that territory, nor satisfy local language and administrative
requirements or pay local fees. Nor will they need to defend their patents in
different jurisdictions and receive different, sometimes conflicting, rulings.

This new system
is also expected to significantly bring down the costs of obtaining a patent. The
European Commission estimates that today, a ‘classic’ European patent (that
needs to be validated individually in 27 Member States) costs 36 000 EUR. The
new unitary patent system will bring the costs down dramatically to around 5
000 EUR, or one-seventh of today’s cost. Further information available: here.

GaAs and InP under Review for a Possible Restriction
under REACH

A
recent EU study collected information on the production, import and use of 44
substances, including GaAs and InP, in articles, as a first step towards
assessing the need for a possible restriction on their use in the EU. Such a
restriction (under Art. 68 REACH) could have an impact not only on European
manufacturing but also on imports.

In a joint
response with other industry associations, SEMI listed the applications where
these compounds are used and the lack of risk to consumers when they are
completely encapsulated. SEMI further highlighted the strategic importance of
these compounds for micro- and nano-electronics. Their restriction would have a
negative impact not only on industry, but on Europe as a whole. It would curb the global competitiveness of
the European semiconductor manufacturing supply chain and it would deprive the
EU of the industry base and products Europe needs to achieve its strategic
goals for the global digital market.

GaAs
and InP are the first III-V compounds being examined under the REACH microscope
and SEMI is actively monitoring developments. In our upcoming advocacy
activities, we will collect information on risk management measures the
industry has in place to avoid exposure to workers and the environment – if
your company can contribute, please contact gourania@semi.org.

EU RoHS Update: Exemptions are Expiring; More Substances
to be Banned under RoHS

The EU RoHS
directive currently bans six substances from being used in electric and
electronic equipment. Certain products of SEMI members are not covered by the
Directive, such as PV panels going into fixed installations, large-scale
stationary industrial tools (LSIT) and large-scale fixed installations. SEMI
members also benefit from exemptions to the Directive, which allow for specific
uses of the banned substances in specified quantities and for a limited period
of time.

A
number of exemptions for specific applications will expire in July 2016.
These exemptions can be renewed but applications for renewal need to be
submitted by end of 2014. Now is therefore the time for industry to review the
list of exempted applications, determine which ones are still needed and start
pooling resources to draft the renewal application.

Additional
substances will be banned under RoHS by 22 July 2014.
An EU-funded study is currently underway to develop a methodology for
evaluating the risk posed by hazardous substances and to determine whether they
should be banned. By the end of 2013, this study will also propose additional substances
that should be restricted. The European Commission will then decide on banning
these substances under RoHS, the transition periods allowed for the
manufacturing supply chain to adjust and start considering necessary
exemptions.

The SEMI RoHS
working is actively contributing to the drafting of the review methodology. For further information and to contribute to
this work, please contact Sanjay Baliga at sbaliga@semi.org

The EU is now
also considering whether it needs to adopt EU measures to support responsible
sourcing from conflict-affected or high-risk areas. It is yet not clear what minerals or what
countries a possible EU initiative would focus on, nor whether its nature would
be voluntary or binding. The question is also raised whether EU measures should
address specific end-products or downstream industry sectors.

A
number of initiatives on conflict minerals already exist, including the OECD
guidelines on due diligence and the EU is looking to build on these and
reinforce transparency through the supply chain. In the U.S., the Dodd-Frank
act requires companies to report annually whether they or their suppliers are
using conflict minerals (tin, tungsten, tantalum and gold originating from the
Democratic Republic of Congo or an adjoining country) and the EU is seeking
feedback on how these provisions are working in practice.

The adoption of
an EU legislative measure would have significant implications for SEMI members,
creating a traceability requirement across the entire manufacturing supply
chain. The consultation is available online here
– deadline for submissions is 26 June
2013. For further information, please contact gourania@semi.org